Should you buy Dogecoin after the recent dip

• Dogecoin price drives south and tags the $0.109 to $0.124 demand zone, suggesting a bounce is likely.
• If DOGE produces a decisive move above the upper trend line at $0.139, a 68% upswing to $0.235 could follow.
• A weekly candlestick close below $0.078 will invalidate the bullish outlook.

Dogecoin price is tracing a massively popular and bullish pattern on the weekly time frame. A breakout from this setup could trigger bullish volatility for the meme coin, which has been virtually absent since its all-time high in May 2021.

Dogecoin price to catapult soon

Dogecoin price nosedived nearly 85% from its all-time high at $0.740 and set a bottom at $0.109 in roughly less than a year. This slump comes as the entire crypto market has suffered a slow downtrend. Unlike many altcoins, however, DOGE has not managed to recover its losses. 

The slow downtrend for DOGE has produced three distinctive lower highs and lower lows, which when connected using trend lines describes a falling wedge pattern.

This technical formation forecasts a 68% upswing to $0.235, obtained by adding the distance between the first swing high and swing low to the breakout point at roughly $0.139. Although Dogecoin price has come close to breaking out, it has so far failed – instead,  crashing lower and tagging the $0.109 to $0.124 weekly demand zone.

Investors can take a leap of faith and accumulate DOGE as it retests the aforementioned demand zone. The resulting bounces could be the key to triggering a massive rally for Dogecoin price.

DOGE/USDT 1-week chart

Regardless of the optimism around the underperforming dog-themed crypto, if Bitcoin heads south, so will most other altcoins, including DOGE. If Dogecoin price produces a weekly candlestick close below $0.078, the bullish thesis will face invalidation and such a close could potentially catalyze a crash to $0.048.